9911796707
TMI Blog1967 (4) TMI 192X X X X Extracts X X X X X X X X Extracts X X X X ..... of monthly returns and to his being assessed on the basis of such returns. The assessment order is for the period ending 31st March, 1961. His premises were inspected by the Sales Tax Authorities on 27th December, 1960. Two anamath account books were discovered and they were in the form of two small pocket note-books. One book contained entries for transactions from 16th September, 1960, to 29th November, 1960, and the other, entries for transactions from 29th November, 1960, to 27th December, 1960. During the period covered by the anamath accounts, the entries therein revealed a turnover of Rs. 3,31,915 of transactions assessable at 2 per cent. and Rs. 10,080.19 of transactions assessable at ½ per cent. There were intrinsic data to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that after having elected to be governed by rule 18 of the Madras General Sales Tax Rules for the purpose of assessment, he was bound to have returned a correct turnover in his monthly returns. A penalty was levied by the assessing authority under section 12(3) of the Act which was ultimately reduced by the Tribunal to Rs. 5,000, representing half the maximum penalty that could be inflicted under the section. In this revision case, the learned counsel for the petitioner relies on the circumstance that the dealer on 25th April, 1961, after the end of the assessment year, filed what he called a supplementary return, in which he included the turnover disclosed in the pocket note-books above referred to. The learned counsel contended that sinc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r can take that into account before making a final assessment. It is in that context that the Bench observed thus: "When a correct return or what is claimed to be a correct return is made before the assessment order, the assessing officer is bound to take note of it and is not entitled to ignore it and proceed on the footing that inasmuch as the assessee had filed incomplete or erroneous provisional monthly returns, that should be the basis for application of section 12(2)." But there was no question considered in that decision as to whether an assessee can be awarded a penalty for submitting incorrect monthly returns after he had elected to be assessed on the basis of monthly returns under rule 18 of the Madras General Sales Tax Rules. It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l, 1961, may justify the authority in including that turnover in his final assessment, and also in estimating, if necessary, the turnover for suppressions for the earlier period in the final assessment, so far as the question of the award of penalty is concerned, his filing a supplementary return on 25th April, 1961, will not be a ground for condoning his wilful default. In the above circumstances, we are of the opinion that the award of penalty in this case was within the competence of the assessing authority, and was perfectly legal. In regard to the quantum of penalty, we are of the opinion that the Tribunal had given the necessary relief by reducing the penalty to one half of what had been awarded by the assessing officer and there is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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